By Marc Frank in Havana
Published: April 16 2009 20:56
Terasita, the owner of a small family restaurant by the same name on the
outskirts of Havana, has let her fantasies run wild as she considers the
decision by Barack Obama, US president, to ease restrictions on US
citizens – and particularly Cuban Americans – visiting the island.
"I'm planning to fix the place up, make it more comfortable, a better
environment for family fiestas," she says, looking at the empty tables
on the garden-enclosed terrace of her home.
EDITOR'S CHOICE
Obama seeks to avoid Cuba embargo rift - Apr-18
Christopher Caldwell: Isolation will not free Cuba - Apr-17
Castro criticises Obama's Cuba measures
- Apr-14
Obama relaxes travel restrictions to Cuba - Apr-14
In depth: Cuba under Raúl - Dec-18
Slideshow: The Cuban revolution at 50 - Jan-02
Similar to many small businesses off the beaten track in and around
Havana, Terasita caters to Cubans often supported and visited by family
abroad. And in her mind, this week's move by the Obama administration to
lift restrictions on the number of visits Cuban Americans can make and
the amount of money they can send home means more business.
"There will be more people and money coming in and logically more
business," she says. "Cubans like to take their families and friends out
for a meal when they visit."
A broad spectrum of Cubans, from dissidents to state workers, and even –
albeit begrudgingly – Fidel Castro, the former leader, praised Mr Obama
this week for his moves.
Besides easing restrictions on travel and remittances, the US president
also loosened regulations on communications companies doing business
with the island, although this has received far less public attention.
"Positive, although minimal," the ailing Mr Castro quipped in one of two
essays on the measures in the official media, demanding in the other
that Mr Obama lift the "cruel" and "genocidal blockade" completely.
He warned in a third essay on a different topic that, while Mr Obama
might mean well, the next US president could be even more menacing than
his predecessor, George W. Bush.
"The measures are a huge threat to the government but difficult to
reject given [the] rhetoric," says Oscar Espinosa Chepe, a dissident
economist. "They are not sure how to respond."
Foreign businessmen with years of experience in Cuba say the reality is
that the government would welcome US telecom companies for talks,
approve what was in its interests and stall and block what was not.
Mr Espinosa says that with his measures Mr Obama is helping tens of
thousands of family businesses, such as Terasita's, round the edges of
the state-dominated economy that have been hurt by the imposition of
tight controls on Cuban Americans.
Mr Obama's authorisation to explore commercial flights to the island, he
says, also signals that all Americans might be travelling to the country
soon.
Many Cubans and foreign observers also believe that this week's move is
just the beginning.
"The measures signalled 49 states, not just Florida, are now influencing
US policy," says the trade promotion manager for an Asian country, who
asked not to be identified. "Those 49 states are in recession and
looking for new markets. Cuba...is the best new market out there."
The Cuban government, which takes 20 cents of every dollar entering the
country and then slaps a 240 per cent mark up on goods at hard currency
shops, will also benefit. That angers Mr Obama's critics, but not most
foreign governments and businessmen.
The international financial crisis and slowdown have combined with three
hurricanes last year and bureaucratic bungling to create a serious
liquidity crisis that has many foreign businesses waiting for weeks and
months to transfer money out of the country.
"This package is very likely to ease the credit and banking crunch that
many foreign companies have been experiencing," says a western economic
attaché.
A Communist party economist says relations with the US and President
Raúl Castro's efforts to improve economic efficiency appear to be headed
in the right direction and the result could be improved economic
liberties and performance.
"The economic situation is really deteriorating and Raúl does not have
much time to improve the situation," the economist says. He asked not to
be identified due to a prohibition on talking to journalists without
government permission.
Raúl Castro's economic cabinet was replaced last month and the new one
has been busy reviewing policy, he says.
"I think the measures were just the beginning of changes that will help us."
FT.com / In depth - Cubans prepare for a bonanza (1 May 2009)
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